ASX 200 futures were down 20 points or 0.23% at 8:30 am AEST on Thursday, pointing to a softer open for the local exchange after Wall Street ended mixed overnight and commodity markets remained volatile.
The US Federal Reserve held interest rates steady for a fourth straight meeting, maintaining its 4.25–4.50% target range and signalling two rate cuts remain on the table for 2025. However, policymakers revised down US GDP forecasts and raised inflation estimates, noting the likely impact of ongoing tariffs and trade policy uncertainty.
Meanwhile, global markets remain on edge as the Israel–Iran conflict drags into its sixth day. While there’s been no major escalation, all eyes are on whether President Trump will commit US forces to support Israel’s campaign against Iran’s nuclear infrastructure.
Wall Street ends flat after Fed pause
US stocks gave up early gains following the Federal Reserve’s policy decision, with the S&P 500 closing 0.03% lower, the Dow down 0.10%, and the Nasdaq eking out a 0.13% rise.
Technology and biotech names led the charge on the Nasdaq, while energy and gold stocks underperformed. Amazon and Alphabet made headlines with fresh AI and robotaxi initiatives, while Microsoft and Boeing each faced scrutiny over looming job cuts and safety concerns, respectively.
Bond markets were steady, with the US 10-year yield near 4.39%, and the US dollar edged lower against major currencies. The Australian dollar rose to US$0.6510.
In commodities, copper gained 1.2% while iron ore remained under pressure, falling for a fifth session to US$94.71 a tonne. Brent crude slipped 0.3% to US$76.21 amid conflicting headlines on Middle East escalation.
ASX in focus
The likely slow start for the Australian market follows the ASX 200 losing 10.1 points in Wednesday’s session, closing 0.12% lower at 8,531 on weaker iron ore and gold stocks despite a strong session for uranium and silver miners.
The benchmark is poised for a third consecutive slip on Thursday, though losses have been modest so far, with the index down just 0.7% from its record close last week. Today’s session looks relatively quiet, with little movement overnight in global markets and only minor swings across key ETFs.
In corporate news, HomeCo Daily Needs REIT reported a $142 million uplift in its June 30 portfolio revaluation and reaffirmed its FY25 guidance, including an 8.5 cent per share dividend. Meanwhile, KMD Brands flagged a decline in second-half sales, down 1.9% year-to-date compared to a 0.5% gain in the first half — signalling softening retail conditions.
The S&P/ASX Small Ordinaries Index declined 0.64% on Wednesday to 3,249.10. Among the small-cap newsmakers on Thursday:
- Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has secured Swedish regulatory approval for its proposed merger with Mandalay Resources, with shareholder votes expected in late July.
- Race Oncology Ltd (ASX:RAC, OTC:RAONF) has safely dosed the first patient in its RC220+doxorubicin Phase 1 trial for solid tumours, with no dose-limiting side effects and new sites in Asia to follow.
- Sprintex Ltd (ASX:SIX) landed a A$377,000 order and expanded its Türkiye distribution deal, doubling its five-year commitment to A$10 million. New high-capacity jet blowers target larger industrial projects.
- Orthocell Ltd (ASX:OCC, OTC:ORHHF) says new study results show its Remplir™ device outperforms standard suture-only nerve repair, supporting its US rollout with better regeneration and faster recovery.
- International Graphite Ltd (ASX:IG6) is advancing its Collie plant and assessing US/European expansion, with US$7.5 million in potential US Department of Defense funding under review.
- Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) will host a virtual site tour of its Nifty Copper Complex, showcasing large sulphide resources and extensive brownfield infrastructure.
Commodities and currencies
- Gold eased 0.54% to US$3,368.99/oz
- Oil: Brent -0.31% to US$76.21/bbl, WTI +0.04% to US$74.87/bbl
- Copper: +1.19% to US$9,693.60/t
- Iron ore: -0.16% to US$94.71/t
- AUD/USD: +0.45% to US$0.6510
- Bitcoin: +0.03% to US$104,511
Looking ahead
Today’s local economic focus will be on Australia’s May employment report at 11:30 am AEST. The consensus expects a modest 21,200 jobs gain and unemployment to remain steady at 4.1%.
Overseas, attention turns to the Bank of England’s interest rate decision tonight, while US markets are closed for Juneteenth and reopen on Friday.